TKO Group (NYSE:TKO) Stock Rating Raised to Buy at Arete Research

TKO Group (NYSE:TKO) was upgraded by research analysts at Arete Research from a “neutral” rating to a “buy” rating in a note issued to investors on Tuesday, Marketbeat reports. The brokerage presently has a $208.00 price target on the stock. Arete Research’s target price indicates a potential upside of 16.20% from the stock’s previous close.

Several other equities analysts also recently weighed in on TKO. Guggenheim lifted their target price on TKO Group from $230.00 to $235.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Morgan Stanley raised their price target on TKO Group from $225.00 to $230.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 4th. Susquehanna cut their target price on TKO Group from $235.00 to $224.00 and set a “positive” rating on the stock in a research note on Friday. Sanford C. Bernstein raised their price objective on TKO Group from $235.00 to $240.00 and gave the stock an “outperform” rating in a report on Wednesday, September 16th. Finally, Seaport Research Partners reiterated a “buy” rating on shares of TKO Group in a report on Friday, October 9th. Eleven equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $232.62.

TKO Group Trading Up 2.7%

NYSE:TKO traded up $4.77 during trading hours on Tuesday, reaching $179.01. The company’s stock had a trading volume of 20,341 shares, compared to its average volume of 1,222,135. The firm has a market capitalization of $33.88 billion, a price-to-earnings ratio of 62.76 and a beta of 0.67. TKO Group has a 1 year low of $170.92 and a 1 year high of $226.94. The firm has a 50-day simple moving average of $186.36 and a 200-day simple moving average of $190.44. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.28 and a current ratio of 1.28.

TKO Group (NYSE:TKO) last issued its quarterly earnings data on Monday, August 3rd. The company reported $1.34 EPS for the quarter, missing the consensus estimate of $1.41 by ($0.07). The company had revenue of $1.55 billion during the quarter, compared to analysts’ expectations of $1.54 billion. TKO Group had a return on equity of 2.67% and a net margin of 4.33%. The business’s quarterly revenue was up 18.2% on a year-over-year basis. During the same quarter last year, the business earned $1.17 earnings per share. Research analysts expect that TKO Group will post 4.42 EPS for the current fiscal year.

Insider Activity at TKO Group

In other TKO Group news, insider Mark Shapiro sold 19,120 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $194.39, for a total value of $3,716,736.80. Following the completion of the transaction, the insider owned 147,071 shares in the company, valued at $28,589,131.69. This represents a 11.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Nick Khan sold 9,189 shares of the firm’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $175.19, for a total value of $1,609,820.91. Following the transaction, the director directly owned 20,162 shares in the company, valued at approximately $3,532,180.78. This represents a 31.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 97,325 shares of company stock worth $18,798,012 in the last ninety days. Company insiders own 64.30% of the company’s stock.

Hedge Funds Weigh In On TKO Group

Several hedge funds have recently added to or reduced their stakes in TKO. Cornerstone Planning Group LLC boosted its holdings in TKO Group by 543.5% during the first quarter. Cornerstone Planning Group LLC now owns 148 shares of the company’s stock worth $28,000 after buying an additional 125 shares in the last quarter. Ameritas Advisory Services LLC purchased a new stake in shares of TKO Group in the 2nd quarter valued at approximately $43,000. Summit Securities Group LLC boosted its position in shares of TKO Group by 211.1% in the first quarter. Summit Securities Group LLC now owns 308 shares of the company’s stock worth $62,000 after buying an additional 209 shares during the period. Contravisory Investment Management Inc. acquired a new stake in TKO Group during the 1st quarter worth about $79,000. Finally, AlphaCentric Advisors LLC acquired a new stake in shares of TKO Group during the first quarter worth approximately $99,000. 89.79% of the stock is currently owned by hedge funds and other institutional investors.

TKO Group Company Profile

TKO Group Holdings, Inc is a sports and entertainment company that owns and operates UFC and WWE, two global combat-sports and sports-entertainment brands. UFC promotes mixed martial arts events, while WWE produces live and televised professional wrestling programming featuring its roster of performers, storylines and branded events.

In addition to its core properties, TKO provides related media, licensing, sponsorship, live-event and consumer-products opportunities. The company’s businesses serve audiences internationally through live events, broadcast and streaming distribution, digital content, merchandise and other commercial partnerships.

TKO was formed in 2023 through the combination of UFC and WWE under Endeavor Group Holdings.